should the government use $700billion of tax-payer's monies to buy up otherwise-bankrupt companies ?

edit: oops mistyped. it is indeed "billion"

09-23-2008, 04:26 PM

Stuyvesant

By government you're talking about the US, right? And by companies you're talking about financial institutions, right?

There is not real reason to do this. It's a short term solution to a long term problem. Either take the hit now, or a bigger one later. The gov should leave the markets alone. It's supposed to be a 'free market'. Interference should be restricted to adjustements reflecting the Treasury's policies.

Um, if you're talking about companies in general, then I'd assume you're talking about saving jobs and that kinda stuff. If that's the case, then why not? Like the Mini Cooper after the war -produce goods at a loss, but give employment. Fine if you have the cash to burn.

09-23-2008, 04:28 PM

R3dKnight

Aye, Better then doing nothing.
AmeriKa is already going down the path of United Soviets States of Amerika

Well the thing is, If those companies fall, pretty much does the US, so there is not much the US can do about it... sad but true, only doom awaits :)

Bush is just borrowing time, dunno what good does that... the more you borrow the harder is going to be the fall.

Barack is not saying anything, I bet he is at home thinking... Is really worth risking my ass to save this country of such a huge mess? (If he is elected and can't deliver on his promises) and hell I don't think anyone would be able to deliver anything other than bad news in this gray times.

But there is still hope, just KILL 50% of the Military Budget (Just keep the Navy and the Air force) and go green IE farm your way out of hell

China is the Industrial Behemoth nothing we can do about that any more >_>

PS: We can try to get the Chinese to have a few revolutions (that always works)

09-23-2008, 04:48 PM

R3dKnight

or you could try to fight for an independent state by
triggering a small civil war.

and if your lucky and win(with the help of Russia)
you will be free of debt and let the other united states pay for your previous debt

09-23-2008, 05:37 PM

neruke

^ Yeah, genius.

The US has fault because they were alway against regulations.
So they have to get out of this alone.

I really really really hope that no country on this planet is gonna help them... because its simply their fault.
The EU has planed to introduce regulations, but the US always rejected it.

09-23-2008, 05:48 PM

R3dKnight

they should of course

every time I read some American political shits on the internet.
The Republican always had to defend how great Bush Sr/Jr and Reagan is on
how the Tax cuts to the elites helped the economy.
how fuel prices has dropped
how good times are.
how the Clinton's years has hurt the American economy.
and how Tax is teh evil!

well anyway.
If you don't wanna face reality and keep borrowing you will
end up just like U.S.S.A

And Btw
You hear it first from me about the civil war!

09-23-2008, 11:09 PM

Hanul

I think I heard Bill Clinton saying he did this, very smart idea:

Loan the companies the money, but charge them interest so the tax payers do get something out of this shafting.

09-24-2008, 06:55 AM

R3dKnight

the 700 billions are nothing but flushing money
used to buy all those unwanted/toxic bonds

which Paulson probably sell it back to the market for halve the price.
from 700 -> 350 -> 175 ...till the market got better, which I doubt that ever will happen

and besides the 700 billion isn't tax money.
It is borrow money, that you will later have to pay back with tax money, rent, amero and slavery to Japan/China

09-24-2008, 07:22 AM

adonai

Quote:

Originally Posted by Hanul

I think I heard Bill Clinton saying he did this, very smart idea:

Loan the companies the money, but charge them interest so the tax payers do get something out of this shafting.

Uh yeah. This is already possible (depending on the firm). Without a charter to operate as a private bank though, I don't think it's possible, that's why a couple of invest banks recently did this (Goldman Sachs for one). The companies still want their $ though. I mean those securities do have a market value (even if it may be slightly less than crap), but I don't see any particular reason for the government to pay above market prices to take it off their hands to increase liquidity. Why not claim those assets under eminent domain and set the price ourselves? If I recall correctly the proposed measure is a reverse bidding process, with so few competitors I wouldn't be surprised if there was collusion.